Chandeleur Pipe Line Company

Second Revised Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-411-000, Status: Effective

Second Revised Sheet No. 49 Second Revised Sheet No. 49 : Effective

Superseding: First Revised Sheet No. 49

GENERAL TERMS

AND CONDITIONS

8.0 ACCOUNTING PROCEDURES (Cont'd)

8.2 Billing and Payment (cont'd)

(e) Failure to Pay

Should Shipper fail to pay all of the amount of any bill as

herein provided when that amount is due, interest on the

unpaid portion of the bill shall accrue at the then effective

prime interest rate (Chase Manhattan Bank), from the due date

until and including the date of payment. Upon thirty (30)

Days notice from Chandeleur, service under the Agreement will

automatically be suspended for such failure to pay. However,

if Shipper, in good faith, disputes the amount of any bill or

part thereof and: 1) promptly pays to Chandeleur the

undisputed amount, 2) provides Chandeleur documentation

identifying basis for the dispute and 3) furnishes to

Chandeleur a good and sufficient surety bond in an amount,

and with surety satisfactory to Chandeleur, or provides other

assurance acceptable to Chandeleur guaranteeing payment to

Chandeleur of the amount ultimately found due after a final

determination that may be reached either by agreement or by

judgment of the courts, as may be the case, then Chandeleur

shall not be entitled to automatically suspend service under

the Agreement unless and until Shipper defaults on the

conditions of the bond or other assurance.

Also, if the party that fails to pay any portion of any bill

is a temporary replacement Shipper, then Chandeleur will bill

the releasing Shipper who remains liable for payments in the

subsequent monthly bill for that portion of the concurrent

conditional credit that the releasing Shipper previously

received and that the replacement Shipper failed to pay.

Additionally, a releasing Shipper may terminate the release

of capacity to a replacement Shipper if such Shipper fails to

pay all of the amount of any bill for gas delivered under

the executed Temporary Term Transportation Service Agreement,

when such amount is due pursuant to this section of

Chandeleur's tariff.

If Shipper's failure to pay extends beyond the thirty (30)

Day notice period, in addition to automatically suspending

service under the Agreement, Chandeleur shall have the right

to terminate Shipper's Transportation Service Agreement, if

failure to pay continues for seventy (70) days, in addition

to any other remedy Chandeleur may have hereunder.